Our standard: Meeting the highest expectations.

Impact investing is defined in various ways. In line with the definition of the German Impact Investing Association (Bundesverband Impact Investing, BVII), impact investing is an investment approach that seeks to generate not only a financial return but also a measurable environmental and/or social impact.
At DEG Impact, we are committed to environmental protection, the sustainable use of natural resources, and compliance with stringent social Standards. These principles are fundamental to promoting environmental, economic, and social development. Supporting such long-term positive impact is a shared societal responsibility and therefore an essential component of the investment solutions we advise.

We see impact investing as an opportunity to combine financial returns with positive contributions to sustainable development goals. This may also involve supporting sustainable transformation processes, such as the creation of jobs with fair working conditions or the efficient supply of renewable energy to production facilities.

Through targeted advisory services for investments in emerging markets, impact investing can represent an attractive addition to the portfolios of institutional investors, including family offices, pension funds, foundations, sovereign wealth funds, and insurance companies.

Together with DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH (DEG), we draw on extensive experience in the joint conception and implementation of tailored investment solutions. Over the past 15 years alone, more than 2,000 successful projects have been implemented exclusively in emerging markets. At the same time, our network has continuously expanded and today comprises more than 5,000 international experts across a wide range of disciplines.

For DEG Impact, advising on funds and investments in developing and emerging markets also includes adherence to strict sustainability standards. The consideration of Environmental, Social and Governance (ESG) factors is an integral part of the responsible investment approach of the DEG Group. This approach helps identify, mitigate, avoid, and manage material risks while at the same time promoting sustainable business practices and positive social outcomes.

In our advisory activities, we follow the sustainability requirements and exclusion criteria applied by our parent company, DEG (see the Harmonized EDFI Exclusion Lists). For example, no investments are made in projects or companies that permit forced labour or child labour, contribute to the destruction of areas with high conservation value, or support racist and/or anti-democratic media activities.

Harmonized EDFI Exclusion Lists

We are committed to measuring impact. DEG's impact measurement tool, DERa, is used in our advisory activities and portfolio construction processes. Through the use of this tool, we can assess and quantify social, environmental, and governance factors. Furthermore, through ongoing monitoring and active engagement, we support the implementation of defined sustainability standards in developing and emerging markets.

For us, impact also means contributing to positive change through continuous improvements, supporting the development of markets and sectors, and enabling environmentally sustainable business practices, all with the objective of creating benefits for local communities.

ESG and Impact Strategy

DERa, DEG's impact measurement tool, stands for Development Effectiveness Rating. The framework is aligned with the United Nations Sustainable Development Goals (SDGs) and evaluates the development contributions of financed companies and projects across five impact categories. These five impact categories are:
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• Good and fair employment
• Local income generation
• Market and sector development
• Environmentally sustainable business practices
• Benefits for local communities

DERa incorporates, among other elements, a net impact perspective and also measures both the transformation progress achieved by clients and DEG's contribution to that transformation. DEG has developed an internal reporting system that supports the ongoing management and monitoring of impact contributions.

In addition, investee companies are increasingly provided with Business Support Services to help strengthen their resilience and improve their contribution to achieving the SDGs.
By using the DERa framework, potential risks can be identified and mitigated at an early stage. At the same time, it supports targeted improvements in economic, social, and environmental performance.

Development Effectiveness Rating (DERa) 2.0